Ex-China hot dip galvanized (HDG) offer prices have increased due to the significant strengthening of the Chinese currency against the US dollar. Offers are at $630-655/mt FOB this week, edging up by $5/mt on average compared last week, while a stable trend has been seen in the local market. The reference deal prices have been heard at $630/mt FOB, moving up by $2.5/mt on average compared to the previous week.
The appreciation of the Chinese currency has provided some support for ex-China HDG offer prices. “The exchange rate of the Chinese currency has hit a new record high since July 2018, pushing up ex-China HDG offer prices, while buyers in overseas markets have been interested in purchases,” an international trader said.
During the given week, demand for HDG in the domestic market in China has been slack, while inventories have been stable at relatively low levels, providing support for prices. Market participants are cautious as regards the future prospects for the market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have remained at RMB 4,890/mt ($735/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 22, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,810/mt ($572.5/mt), increasing by RMB 85/mt ($12.8/mt) or 2.3 percent since October 15.
$1 = RMB 6.6556